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Dive Brief:
- Vince is shutting down its Rebecca Taylor business, the company announced Monday in its second quarter earning results.
- The company is currently in discussions with lenders to finalize the wind down plan, which is expected to include selling off its assets and exiting business channels.
- Vince reported a net sales increase of 13.4% to $89.2 million, while Rebecca Taylor and Parker sales combined decreased 28%.
Dive Insight:
Vince is closing Rebecca Taylor in order to focus on its core businesses.
“In light of the continued challenging macro environment and after careful consideration, we have made the difficult decision to exit the Rebecca Taylor business,” Vince CEO Jack Schwefel said on a call with analysts. “This decision will allow us to focus all of our resources on the growth and profitability of the Vince brand going forward.”
The wind down of the business is in early stages and is expected to take several months to complete, Chief Financial Officer Dave Stefko said. The company decided not to provide guidance because exiting Rebecca Taylor “is subject to various risks and uncertainties that could impact our ability to successfully complete the wind down,” Stefko said to analysts.
The global apparel and accessories company acquired Rebecca Taylor, along with women’s fashion brand Parker, in November 2019. At the time of the deal, Vince saw the acquisition as a way to diversify its portfolio and increase revenue.
After founding the company in 1996, designer Rebecca Taylor decided to part ways with her namesake brand in August of 2019.
via https://www.aiupnow.com
Kaarin Vembar, Khareem Sudlow
